Cairo: Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat has signed an agreement with African Development Bank (AFDB) Country Manager Abdourahmane Diaw for the second phase of the Private Sector Development and Economic Diversification Support Program. The agreement, signed on January 19, 2026, is aimed at budget support and advancing structural reforms and is valued at $170 million.
According to State Information Service Egypt, the signing also includes a $400,000 grant, approximately 19 million Egyptian pounds, to enhance sustainability at the Abu Rawash wastewater treatment plant. The ceremony was attended by Deputy Minister of Finance Yasser Sobhy and Deputy Minister of Housing Sayed Ismail. This agreement is part of the Ministry of Planning's strategy to strengthen economic relations with multilateral development partners and ensure integration between external financing and domestic efforts to implement Egypt's national structural reform program.
Al-Mashat emphasized that the agreement illustrates the deep strategic partnership between Egypt and the AFDB, which plays a crucial role in supporting comprehensive and sustainable development efforts in the country. The partnership aims to advance progress across key sectors such as water and sanitation, structural reforms, and transport. The deal is part of broader government efforts, in collaboration with development partners, to mobilize concessional financing, support the budget, and expand fiscal space for human development programs.
She further highlighted the AFDB's strong support for the private sector, with private-sector financing operations in 2025 being three times those of sovereign operations. This reflects strong confidence in Egypt's growing economy and underscores the country's openness to new partnerships and foreign investments that can drive innovation, sustainable growth, and long-term development.
The second phase of the program builds on the initial phase, which was approved by parliament in December 2024 with a financing of $131 million. In connection to the grant for the Abu Rawash wastewater treatment plant, Al-Mashat noted the importance of the facility, one of the largest in the world, and emphasized the cooperation with the bank aims to enhance environmental sustainability and operational efficiency at the plant.